Monday, April 6, 2009
Transactional Records Access Clearinghouse at Syracuse University, Large Financial Service Corporations Dominate the Corporate World, but IRS Allocates Only a Small Proportion of Its Corporate Auditors to the IRS Group Policing These Companies:
In the just-ended fiscal year, more than three quarters of the tax returns filed by the nation's largest corporations came from financial service organizations — banks, insurance companies, investment advisors, brokerage houses, securities services and the like. And the same group of businesses is credited with controlling 72% of all large-corporation assets, with earning 46% of the net income of all large corporations and reporting 33% of the taxes in this area.
Despite the overwhelming place of the financial services sector in the broader corporate world, however, documents and data obtained by the Transactional Records Access Clearinghouse (TRAC) show that in FY 2008 the IRS allocated only 15% of its overall corporate revenue agents to the agency group that has the lead authority for auditing this complex and now troubled segment of the nation's economy (see Figure 1).